The market for semiconductor packaging materials, including
thermal interface materials, is expected to maintain its $20 billion value
through 2017, despite shifts away from the use of precious metals such as gold
in wire bonding, according to a new study by SEMI and TechSearch
International. Despite continued price pressure, organic substrates
remain the largest segment of the market, worth an estimated $7.4 billion
globally in 2013 growing to more than $8.7 billion by 2017. Most packaging
material segments are encountering low revenue growth as end users seek lower
cost solutions for packaging and downward pricing pressures are severe. In
addition, the transition to copper and silver bonding wire has significantly
reduced impact of gold metal pricing in wire bond packages.

Several areas are experiencing stronger growth. The expansion of
CSPs with laminate substrates is driven by explosive growth in mobile computing
and communications devices such as smartphones and tablets. The same
products are driving growth in wafer level packages (WLPs), which are in turn
driving use of dielectric materials used for redistribution. The growth
in flip chip adoption continues to expand the market for underfill
materials. A number of key segments are seeing a consolidation of the
supplier base, though new entrants in Asia are entering some segments.

Semiconductor Packaging Materials
Segment

Estimate of 2013 Global Market ($M)

Organic Substrates

$7,408

Leadframes

$3,342

Bonding Wire

$4,455

Mold Compounds

$1,394

Underfill Materials

$208

Liquid Encapsulants

$849

Die Attach Materials

$665

Solder Balls

$280

Wafer Level Package Dielectrics

$94

Thermal Interface Materials

$620

The findings in the report are based on more than 150 in-depth
interviews conducted with packaging subcontractors, semiconductor manufacturers
and materials suppliers. It includes previously unpublished data on
revenue, unit shipments and market shares for each packaging material segment;
a five-year forecast of revenue and units (2012-2017); supplier rankings (for
key segments) and listing (including new players); and an analysis of regional
market trends and size.

The report also identifies important technology and business
trends affecting the packaging materials market, as well as opportunities for
suppliers. Some of the key opportunities include: